Professional Documents
Culture Documents
Project
Project
UNDERTAKEN AT
TIMEX GROUP INDIA LIMITED
Submitted By
N.BHUVANESWARI
(Reg.No:12309631007)
Of
GOJAN SCHOOL OF BUSINESS AND TECHNOLOGY
REDHILLS
SUBMITTED TO THE
MARKETING
AUGUST 2010
BONAFIDE CERTIFICATE
[BHUVANESWARI.N]
DECLARATION
I, N.BHUVANESWARI., (Reg.No:12309631007) a
bonafide student of Department of Business
Administration, Gojan School Of Business and
Technology, Chennai would like to declare that the
project entitled, “A STUDY ON DISTRIBUTION
CHANNEL” in partial fulfillment of Master of
Business Administration course of the Anna
University is my original work.
(BHUVANESWARI.N)
TABLE OF CONTENTS
CHAPTER PAGE
S TITLE NO.
Title Page
Bonafide Certificate
Declaration
Acknowledgement
Table of Contents
Abstract
CHAPTER
-1 INTRODUCTION
1.1.Introduction - Watch Market
1.2.Introduction to the Company
1.3.Company Profile
1.4.Product Profile
1.5.Industrial Profile
CHAPTER DEVELOPMENT OF THE MAIN
-2 THEME
2.1.Need for the Study
2.2.Scope of the Study
2.3.Objectives of the Study
2.4.Limitations of the Study
2.5.Review of Literature
CHAPTER
-3 LEARNINGS IN THE COMPANY
3.1.Introduction about CFA
3.2.CFA in TIMEX
3.3.CFA Process
3.4.Forecasting in CFA
CHAPTER
-4 DISTRIBUTORS IN TIMEX
4.1.Roles Played by the Distributors
4.2.Schemes by the Company
4.3.Benefits to the Distributors
4.4.Advantages of Distributors
4.5.Disadvantages of Distributors
4.6.Conclusion
BIBLIOGRAPHY
ABSTRACT
The retail sector has just begun to boom in India. Since the
early 1990’s, Indian customers are relying more on departmental
stores and shopping malls to purchase their wants and needs.
This has come as a boon for watch manufacturers and dealers,
who are now looking forward to utilise these new outlets to reach
out to the Indian masses. Watch manufacturers are looking at a
suitable mix to market their products ranging from exclusive
retail outlets to display sections in malls and large departmental
stores.
This shows that the main aim of this Timex Company is to make
their product available to all the people in the world.
Distributors are the only mediator with whom the watches will
be available to all the customers from the nook and corner of the
country.
1.1.2 .THE EVOLUTION THAT BROUGHT A REVOLUTION:
The year was 1985, when Mr. Chapsi Gala, having years of
experience in wholesale trading of Plywood, Mica and Veneer
created his own brand “Timex”. Timex was an instant success in
the market, due to its high degree of production quality,
extensive usability and competitive pricing. Within just six
months, the newly formed Timex group set up its first state-of-
the-art plant for manufacturing commercial & marine ply, block
boards and flush doors. And in a span of just 2 years, another
plywood unit had to be set up due to an ever increasing demand
for the brand. In this venture, Mr. Chapsi Gala was well supported
by his brothers, Jagshi Gala, Suresh Gala and Mahendra Gala.
The year 2002 witnessed new forays of the Group. ACP and
Ceramics were introduced into the repertoire and these added
wings to the Group's soaring aspirations. In 2008, a revolution of
sorts was created by the Timex Group when it set up a highly
modernized unit near Vapi to manufacture an extensive range of
decorative laminates. An enviable infrastructure
The Timex Group has created an infrastructure and a
marketing network that's absolutely enviable. Within just a short
period of time, the Group has managed to create a solid network
of 10,000 distributors and dealers. Its products are available
across the country, right from Assam to Kutch and from Jammu to
Madurai. Today, with employee strength of over 800 people, the
Timex Group reiterates the fact that no dream is too big for the
envisioned.
MISSION:
VISION:
1940s: During World War II, the newly renamed U.S. Time
Company completely converted its factories to wartime
manufacturing. Over the course of the war, it turned an eighty-
four year tradition of reliable mechanical timekeeping to the
record-breaking production of more high-quality mechanically-
timed artillery and anti-aircraft fuses than any other Allied source.
With the beginning of World War I there were new demands for
timepiece design. Artillery gunners needed an easy way to
calculate and read time while still being able to work the guns.
The Waterbury Clock Company met this need by modifying the
small Ingersoll ladies' Midget pocket watch to become military-
issue wristwatches – lugs were added for a canvas strap, the
crown was repositioned to 3 o'clock, hands and numbers were
made luminescent for nighttime readability – thus making one of
the first wrist watches.
Though the company had fallen on hard times during the Great
Depression it still had the manufacturing capability to make large
numbers of timing devices. Mr. Lehmkuhl, who had studied
business and engineering at Harvard and MIT, was appointed
President by Olsen and, under his direction, the company became
the largest producer of fuse timers for precision defense products
in the United States. A new concrete plant was built in nearby
Middlebury, CT in 88 days in 1942 for the high-volume production
of precision timers. In August 1943, the Army-Navy 'E' Award for
excellence was awarded by the United States Under-Secretary of
War to Waterbury Clock Company for the "Anglo-American fuse".
As a result of this success shareholders in the following December
voted to rename the company to United States Time Corporation.
In the 1970s and early 1980s, the American watch and clock
industry was devastated by the arrival of cheap mechanical
watches from the Far East, as well as the development of digital
quartz watches pioneered by Japanese companies. Lehmkuhl
retired in 1973 with no clear successor. Polaroid ended its
contract with Timex in 1975 resulting in a layoff of 2,000
employees. New technology, in the form of electronic digital
watches and quartz analog watches, was developing very rapidly,
making Timex's mechanical watch making production facilities
obsolete. Timex closed and consolidated worldwide operations,
cutting the 30,000 employee workforce to 6,000.New
competition, including Japanese companies, low-cost Hong Kong
producers and large American companies such as Gillette, Texas
Instruments and National Semi-Conductor were aggressively
entering the business.The Disney license had expired and John
Cameron Swayze retired from his role as spokesperson. The
subcontracting business was rebuilt with new customers such as
IBM, Hugin-Sweda and General Electric. In a joint venture with
Sinclair Research Ltd., the company entered the home computer
business, selling such computers as the Timex Sinclair 1000 and
succeeding machines, modeled on the ZX81 and ZX Spectrum. In
1984 after declining sales, the company decided not to compete
in the market any longer.
Company History:
Noble Ancestors :
The first Timex watches rolled off the assembly line in 1949
and soon became known for their dependability. At the time, most
watches were sold by jewelers, who typically marked up prices by
50 percent. To keep its prices low, Timex insisted on only a 30
percent markup, and, consequently, most jewelers refused to sell
Timex watches. Robert Mohr, head of Timex's marketing
operation, opted to bypass the jewelers, instead selling the
watches directly to consumer outlets including drugstores,
hardware stores, and even tobacco stands. During the 1950s and
1960s Mohr built a distribution network that reached nearly
250,000 outlets. By 1961, sales were up to $71 million, with after
tax profits of $2.9 million.
The entire watch industry had a good year in 1977, and Timex
decided to slow the downsizing of mechanical watch production.
However, the company failed to reinstate its advertising budget,
and, as a result, its only profitable product began to decline in
popularity. Timex lost $4.7 million on sales of $600 million in
1979. Sister corporation TMX Ltd., a Bermuda-based company
that supplied watches and parts to Timex, also lost $5 million that
year.
Diversifying in the 1980s :
One of the firm's greatest successes during this time was its
sports watches. In 1984, an Olympic games year, the company
brought out the Triathlon watch, which was water resistant to 50
meters, could recall eight laps of running times, and had a 16-
hour stopwatch. In its first year, 400,000 of the watches were sold
at $34.95 each. Encouraged by this success, Timex brought out a
ski watch that included a thermometer as well as a racing watch
that could measure speeds of up to 999 miles an hour. The
company launched its Atlantis 100 water resistant sports watch in
1986 with a $1 million ad shown during football's Super Bowl. This
ad featured a group of divers discovering a 65-foot replica of the
watch on the bottom of the Red Sea. Five other "adventure"
commercials were also produced.
Its sports watches have gone upscale and gadgety with its
Expedition and Ironman lines. The company also makes and
markets thermostats, pedometers, and weather instruments.
Through a licensing agreement, Timex makes watches for Guess?
and Versace, among others. Founded in 1854, Timex is owned by
the family of Chairman Annette Olsen, whose grandfather bought
the company in 1942.
1.3.1. TIMEX GROUP PRECISION ENGINEERING
LIMITED:
TIMEX established its state-of-the-art precision Tool room and
Injection molding facility in 1992 to support production of plastic
parts for watch business.
1.4.3. NAUTICA:
Nautica watches for men and women combine distinctive
styling, bold colors and unique design. Inspired by sailing and the
sea, the Nautica watches’ functionality reflects an energetic
lifestyle and fuses the best of classic American style with the
latest technical innovation.
1.4.4. OPEX:
Opex is a young, audacious brand that embodies
contemporary French sensibility. Designed in Paris for women and
by women, Opex timepieces are the ultimate expression of
trendy, stylish femininity. Inspired by the rhythm of the prêt-à-
porter collections, Opex reinvents itself each season.
1.4.5. TX:
Engineered in Germany, the TX movement platform was
developed over five years with zero compromises. Using the
finest materials – premium sapphire crystals, sculpted dials and
hands, the finest leather, and an etched case back – every TX
timepiece incorporates four independent motors, each driving a
specific function.
1.4.7. VERSACE:
The combination of Swiss technology with distinctive Italian
style, Versace timepieces are the embodiment of international
glamour – sophisticated, elegant and refined. Versace’s watch
collections are designed in accordance with the Maison’s intrinsic
style and characterized by the iconic Versace logo.
1.4.8. VALENTINO:
An icon of Italian haute couture, designer Valentino Maison’s
design aesthetic is brought into modernity with the creation of
timepieces that express his values: exclusivity, elegance, flawless
craftsmanship, quality and beauty. Based on the culture of
couture, the Valentino watch collection encapsulates the concept
of time in a tangible way.
1.4.9. VERSUS:
Versus watches are urban and youthful, dynamic and
confident. The 2009 versus collection of timepieces emphasizes
the use of bold, edgy design. It embodies the novel combination
of fine materials and the insatiable attention to impressive
detailing.
During the 1930's they found huge success with their Disney
branded Mickey Mouse watches. In the 40's the company was
renamed the US Time company and put all of their efforts into
manufacturing timing devices for artillery and anti-aircraft
devices.
1.Producer↔ Consumer:
This is also known as direct selling because no middlemen are
involved. A producer may sell directly through his own retail
stores, for example, Bata. This is the simplest and the shortest
channel. It is fast and economical.
Small producers and producers of perishable commodities also
sell directly to the local consumers.
Big firms adopt direct selling in order to cut distribution cost
and because they have sufficient facilities to sell directly to the
consumers. The producer or the entrepreneur himself performs all
the marketing activities.